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Will the New Tax changes + other stuff = slower home appreciation?

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  • Peds
    replied


    slower increase in home appreciation?
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    as we are not home owners, i think thats a fine outcome.

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  • Zaphod
    replied





    Also you have the AMT offset and while people may whine about it, lots of calculations seem to imply its a wash. We’ll see after everyone files I guess. 
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    Believe it or not, almost all physician clients who we ran projections for at the end of the year were on track for a lower effective tax rate than the prior year. I think that is very interesting and it was a little surprising to me. Will get to see the actual results as tax season progresses and looking forward to what we learn.
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    Its what I would guess for most. Given the big discount right at the meat of most physicians incomes, it really will be a select few that have any issues.

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  • jfoxcpacfp
    replied


    Also you have the AMT offset and while people may whine about it, lots of calculations seem to imply its a wash. We’ll see after everyone files I guess.
    Click to expand...


    Believe it or not, almost all physician clients who we ran projections for at the end of the year were on track for a lower effective tax rate than the prior year. I think that is very interesting and it was a little surprising to me. Will get to see the actual results as tax season progresses and looking forward to what we learn.

    Leave a comment:


  • Zaphod
    replied
    How many people did this apply to in the first place? Not many. As for the capping its at 750k, which still includes most of the homes in america and is only 250k from the limit prior. Those limits never stopped people from buying more expensive homes anyway, so I dont think it will change much. Theres a couple years where its different, than it will simply be the way it is and no one will think much about it.

    Lots of people have no idea whats going on with their taxes and likely most of the people who casually toss around the 'tax breaks' from mortgage/etc...were never getting them in the first place as they couldnt itemize.

    For the people that could, its a rather small change, but in certain locales the SALT change does hurt a bit. But people buying fancy houses in fancy places werent doing it for tax reasons in the first place. Also you have the AMT offset and while people may whine about it, lots of calculations seem to imply its a wash. We'll see after everyone files I guess.

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  • jfoxcpacfp
    replied
    I just don't think the connection is there. And I don't believe the stock market is dropping and/or stagnant. This is just typical of what the market does in the short term. For the last 9+ years, we have had very little typical volatility so a lot of people now think it is a-typical, particularly those who have had relatively less time in the market.

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  • amphora
    replied
    In the short term, the capping of the mortgage interest deduction probably will slow down the real estate market. But in regions with a strong economy and limited housing supply, it may have a limited effect.

    Given the historic unpopularity of Trump's "tax reform", I expect there to be major reversal of the tax changes by the next president. Tax policy is often modified, but I expect this tax policy to be especially temporary. Don't let the tax tail wag the dog.

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  • Will the New Tax changes + other stuff = slower home appreciation?

    I have been thinking of this stuff since the law passed,  but I think a lot of people don't look at taxes until they file in a few weeks. I wonder if after they file and realize that the 24k standard deduction will make it less likely for mortgage interest to be deductible will make people think twice about borrowing huge?


    Do you think the 1. record home increases + 2. Dropping/stagnant stock market + 3. unfavorable tax deduction for mortgage interest = slower increase in home appreciation?


    Thought? Crystal ball?


    (sorry late edit: I forgot to mention rising Interest rates: throw that in there too please)




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